POWERGRID wins 2026 Kakinada green hydrogen ISTS project

Why this project win matters

Power Grid Corporation of India Ltd (POWERGRID) has secured a new inter-state transmission system (ISTS) project linked to green hydrogen and green ammonia development in Andhra Pradesh. The company received a Letter of Intent (LoI) on June 12, 2026, for a project located in Kakinada. The award adds to the growing list of grid projects being structured around India’s renewable energy and green molecule ambitions. For POWERGRID, it also reinforces its role in building evacuation and transmission capacity for new industrial-scale clean energy demand. The project has been awarded through tariff-based competitive bidding, keeping the selection tied to cost competitiveness and execution capability. The win also signals the increasing pace at which transmission infrastructure is being planned for green hydrogen hubs.

LoI received for Kakinada ISTS project

As disclosed, POWERGRID has been awarded the project to build an ISTS for Green Hydrogen and Green Ammonia projects in Kakinada, Andhra Pradesh. The LoI date is June 12, 2026. The project will be executed on a Build, Own, Operate and Transfer (BOOT) basis. Under BOOT, the developer builds the asset, operates it for a defined period, and then transfers it as per the project terms. This model is commonly used for competitively bid transmission projects where long-term operating obligations are built into the award. The company won the project via a tariff-based competitive bidding process, implying it competed against other bidders on tariff outcomes.

What POWERGRID will build: GIS, STATCOM and 765 kV lines

The scope includes construction of a new 765/400 kV Gas Insulated Sub-station (GIS). GIS substations are compact compared with conventional air insulated substations and are typically used where space and reliability needs are key considerations. The project also includes a Static Synchronous Compensator (STATCOM), which is used for dynamic reactive power support and power quality management. In addition, the scope requires installation of 765 kV transmission lines. Together, these elements point to a high-capacity corridor designed for bulk power movement to support large industrial loads. The details provided indicate the project is positioned as enabling infrastructure for green hydrogen and green ammonia facilities.

How the bid was won: tariff-based competitive bidding

POWERGRID won this project through tariff-based competitive bidding (TBCB). Under this route, the winning bidder is generally selected based on the most cost-effective tariff offer that meets technical and commercial requirements. The article notes that POWERGRID had to offer a cost-effective plan against other competitors. TBCB has become a standard mechanism in India’s transmission sector for allocating large projects. The competitive structure also means project economics are shaped heavily by efficient design, execution capability, and financing discipline. For investors, the key point is that such wins are based on competitive tariffs rather than negotiated awards.

Tender trail in Andhra Pradesh: multiple packages and timelines

Alongside the Kakinada award, the article also references tenders connected to transmission systems for proposed green hydrogen and green ammonia projects in the Vizag region. One tender description mentions a major tender to develop high-voltage transmission infrastructure in Andhra Pradesh under reference number CC/T/W-TW/DOM/A02/26/04032 (RFX Number: 5002005206). That tender relates to a pre-bid tie-up for Transmission Line Package TL04. The tender value is shown as zero in the document due to its competitive nature, while the non-refundable tender fee is stated at ₹25,000. The timeline mentioned includes a last date to purchase tender documents of April 5, 2026 (11:55 PM), bid submission deadline of April 7, 2026 (11:00 AM), and bid opening on April 7, 2026 (11:30 AM).

Pre-bid tie-ups for Phase I transmission lines

The text also details a pre-bid tie-up tender for Transmission Line Package TL02 linked to the Pendurthi–Vizag–Srikakulam 765 kV DC line (Part-II). This is associated with the transmission system for proposed Green Hydrogen and Green Ammonia projects in the Vizag area, Andhra Pradesh (Phase I), and is planned through the TBCB route. The tender reference number is CC/T/W-TW/DOM/A00/26/03950, categorized as “Works” under electrical works. The tender document download window is stated as March 16, 2026 (08:00 PM) to March 28, 2026 (11:55 PM). Bid submission is stated as March 16, 2026 (08:00 PM) to March 30, 2026 (11:00 AM), with bid opening on March 30, 2026 (11:30 AM). The tender fee is ₹25,000 and the Earnest Money Deposit (EMD) is ₹0.00.

RECPDCL’s role and the 5 GW evacuation context

The article references REC Power Development and Consultancy Limited (RECPDCL), a wholly owned subsidiary of REC Limited, floating a tender for development of an ISTS to evacuate power from 5 GW of green hydrogen projects in Visakhapatnam, Andhra Pradesh. It also notes that POWERGRID invited bids to select a consortium partner for an ISTS project aimed at evacuating 5 GW of power from green hydrogen and green ammonia projects proposed in the Visakhapatnam area. The last date to submit bids for both tenders is mentioned as March 30, 2026. The pre-bid tie-up awards are described as contingent on POWERGRID winning the upstream tender floated by RECPDCL for the 5 GW evacuation requirement.

Other related awards mentioned: SR-ER strengthening and Andhra BESS

Beyond Andhra Pradesh’s hydrogen-linked lines, the text also mentions a TBCB project where POWERGRID acquired a project SPV named “SR and ER Power Transmission Limited” for execution of “Inter-Regional Strengthening between SR Grid and ER Grid” worth ₹2,722 crore (NCT estimations). The project involves establishing a 765 kV D/C transmission line traversing Andhra Pradesh and Odisha, with associated line bays and reactor installations. It is described as helping meet power import requirements of the Southern Region and supporting energy demand linked to green hydrogen and green ammonia initiatives.

Separately, the article cites a stock exchange filing where POWERGRID was declared the successful bidder under TBCB to establish a standalone battery energy storage system (BESS) project in Andhra Pradesh. The company said it received the Letter of Award (LoA) on December 29, and the award is described as having an LoA date of December 29, 2025. The project follows a Build-Own-Operate (BOO) model and is supported through Viability Gap Funding under the Power System Development Fund (PSDF). It involves developing a 150 MW / 300 MWh BESS at the 400/220 kV SS Kalikiri substation in Chittoor district, Andhra Pradesh. The article also notes that POWERGRID shares closed flat at Rs 260.30 on the BSE in the referenced session.

Key facts snapshot

Market impact and what to watch next

The Kakinada award and the related Vizag-area tenders highlight how transmission planning is being aligned with green hydrogen and green ammonia production clusters. The use of 765 kV assets and grid support equipment such as STATCOM indicates a focus on moving large quantum of power while maintaining stability. The presence of multiple packages and pre-bid tie-up processes also points to a structured contracting approach, where consortium arrangements are lined up before the upstream ISTS award is finalised. Separately, the mention of a 150 MW / 300 MWh BESS award and an inter-regional strengthening project worth ₹2,722 crore shows that POWERGRID’s pipeline spans both transmission corridors and grid flexibility assets under competitive frameworks. The next concrete milestones for the broader hydrogen-linked system, based on the tender details provided, would be bid submissions and openings tied to the March and April 2026 deadlines cited in the tender notices.

Conclusion

POWERGRID’s June 12, 2026 LoI for the Kakinada ISTS project adds another BOOT-based transmission assignment connected to green hydrogen and green ammonia development in Andhra Pradesh. The project’s 765/400 kV GIS, STATCOM, and 765 kV line components underline the high-capacity nature of the infrastructure being built around these new industrial loads. In parallel, the tender timelines and package structures cited for the Vizag region provide a clear view of how the broader Phase I transmission system is being progressed through TBCB-linked processes. Further clarity should emerge as bid submission and opening milestones outlined in the tender schedules are completed.